Rock Ltd issued 180 000 7% cumulative preference shares at R5 each, on the 1...
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Accounting
Rock Ltd issued 180 000 7% cumulative preference shares at R5 each, on the 1 January 2022. During the 2022 financial year, Rock Ltd did not have sufficient funds to pay for the cumulative preference shares dividends. During the following year, 2023, Rock Ltd decided to declare dividends, as they have sufficient accumulated funds to pay the dividends. Rock Ltd has a 31 December financial year end. Required:
How much will be accounted for as dividends declared in the 2023 statement of changes in equity? Motivate your answer.(2)
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